Automatic dispute resolution

ABSTRACT

A method and system for resolving disputes between parties involved in a network-based transaction is described. One aspect of the present invention seeks to automatically facilitate the restitution of value to parties of the transaction, for example, facilitated by a network-based commerce platform or involving a network-based payment service, where a dispute has arisen with respect to the transaction.

RELATED APPLICATIONS

This application claims the benefit of U.S. Provisional Application No.60/476,784, filed Jun. 6, 2003, which is incorporated herein byreference.

TECHNICAL FIELD

The present invention relates generally to the field of commerceautomation. More particularly, the present invention relates to a methodand system for dealing, at least partially in an automated manner, withdisputes between parties involved in electronic commerce.

BACKGROUND

A common type of a network-based transaction is purchasing goods orservices via a network-based commerce facility or trading platform(e.g., a website on the Internet). One type of network-based transactionis an online-auction transaction. In an online-auction transaction, aseller offers an item for sale via an auction website in which a numberof bidders access the website and bid for the item. A transaction iscompleted after the winning bidder pays for the item and the sellerdelivers the item to the winning bidder.

A common type of a network-based transaction is purchasing goods orservices via a network-based commerce facility or trading platform(e.g., a website on the Internet). One type of network-based transactionis an online-auction transaction. In an online-auction transaction, aseller offers an item for sale via an auction website in which a numberof bidders access the website and bid for the item. A transaction iscompleted after the winning bidder pays for the item and the sellerdelivers the item to the winning bidder.

A number of technical challenges exist with such a transaction such as aparty to the transaction failing to follow through with the transaction.For example, the winning bidder may falsely claim that the seller didnot deliver the auctioned item, fail to pay for the auctioned item, orprovide a fraudulent check to purchase the item. In such a case, thebidder is referred to as a “non-paying bidder.” As a result of a failedtransaction, the seller may request a refund for a fee that may havebeen charged by the network-based transaction facility to facilitate thetransaction.

Another problem that may occur is a seller falsely claiming theauctioned item was shipped or that a transaction did not go through, toobtain a refund when in fact a valid sale occurred.

The conventional dangers of fraud and identity theft associated withnetwork-based transactions are well known and present unique technicalchallenges to overcome in a quick and efficient manner. Thus, there is aneed for dealing with disputes between parties involved in anetwork-based transaction. The automation of procedures to handle issuesand disputes presents a number of unique technical problems andchallenges.

SUMMARY OF AN EMBODIMENT OF THE INVENTION

A method and system for resolving disputes between parties involved in anetwork-based transaction is described. One aspect of the presentinvention seeks to automatically facilitate the restitution of value toparties of the transaction, for example, facilitated by a network-basedcommerce platform or involving a network-based payment service, where adispute has arisen with respect to the transaction.

BRIEF DESCRIPTION OF THE DRAWINGS

The present invention is illustrated by way of example and not intendedto be limited by the figures of the accompanying drawings in which likereferences indicate similar elements and in which:

FIG. 1 is a block diagram illustrating an exemplary network-basedtransaction facility in the form of an Internet-based auction facility;

FIG. 2 is a database diagram illustrating an exemplary database for thetransaction facility;

FIG. 3 is a diagrammatic representation of an exemplary non-payingbidder items table of the database illustrated in FIG. 2;

FIG. 4 is a diagrammatic representation of an exemplary non-payingbidders table of the database illustrated in FIG. 2;

FIG. 5 is a diagrammatic representation of an exemplary sellerscomplaint table of the database illustrated in FIG. 2;

FIG. 6 is a diagrammatic representation of an exemplary sellers finalvalue fee request table of the database illustrated in FIG. 2;

FIG. 7 is a diagrammatic representation of an exemplary non-payingbidder appeal table of the database illustrated in FIG. 2;

FIGS. 8A through 8D are flow charts illustrating an exemplary operationfor a network-based facility to handle non-paying bidders and to handlefinal value fee refund requests;

FIG. 9 illustrates exemplary interfaces providing information about anon-paying bidder program;

FIGS. 10A and 10B illustrate exemplary interfaces for entering anon-paying bidder alert or complaint form;

FIG. 10C illustrates an exemplary interface indicating that a non-payingbidder alert or complaint form has been filed;

FIGS. 1lA through 11C illustrate exemplary interfaces for entering afinal value fee credit request form;

FIG. 12 illustrates an exemplary interface for entering a non-payingbidder appeal;

FIG. 13 illustrates an exemplary interface for providing a non-payingbidder appeal confirmation;

FIG. 14 illustrates an exemplary interface for providing a transactionbackout profile;

FIG. 15 is a diagrammatic representation of an exemplary disputes andrequests table;

FIGS. 16A and 16B are flow charts illustrating an exemplary operationfor a network-based facility to resolve disputes without agentintervention;

FIG. 17 illustrates one embodiment of a transaction disputes view;

FIG. 18 illustrates one embodiment of a chargeback details view;

FIG. 19 illustrates one embodiment of a resolution form;

FIG. 20 illustrates one embodiment of a provide proof of refund view;

FIG. 21 illustrates one embodiment of a get refund transaction ID view;

FIG. 22 illustrates one embodiment of a get alternative refundinformation view;

FIG. 23 illustrates one embodiment of a provide shipping trackinginformation view;

FIG. 24 illustrates one embodiment of an accept liability view;

FIGS. 25A and 25B illustrate one embodiment of a NAD process flow inrelation to the NAD type complaint;

FIG. 26 illustrates one embodiment of a NAD dispute form;

FIG. 27 illustrates one embodiment of a Dispute Complaint Response form;

FIG. 28 illustrates one embodiment of the Partial Refund Offer Form;

FIG. 29 illustrates a Disagree with Complaint Form; and

FIG. 30 is a diagrammatic representation of a machine, in an exemplaryform of a computer system, in which a set of instructions for causingthe machine to perform any of the methodologies of the present inventionmay be executed.

DETAILED DESCRIPTION

A method and system for resolving disputes between parties involved inelectronic commerce is described. One aspect of the present inventionseeks to facilitate the restitution of value to parties of atransaction, for example, facilitated by a network-based commerceplatform or involving a network-based payment service, where a disputehas arisen with respect to the transaction. It will be appreciated thatwhen an agreement is reached between parties to transact, that agreementimposes reciprocal obligations on each of the relevant parties. Where adispute arises, one party may have performed an action to at leastpartially satisfy his or her obligations. For example, a buyer party toa transaction may have made payment to a seller party, where after theseller party has failed to perform by not delivering a transactedproduct or service to the buyer. Alternatively, a seller party may haveshipped a product, or at least partially performed a service, to thebenefit of the buyer party when a dispute arises and the buyer partyfails to make a payment to the seller party.

According to one aspect, the present invention attempts to reduce abuseby parties failing to follow through with a transaction, for example, byautomatically providing a party accused of failing to follow through ina transaction an opportunity to resolve or complete the transactionwithout (or at least with reduced) human interaction by operators of thenetwork-based transaction facility. For one embodiment, a submission ofa complaint is submitted to a network-based transaction facility. Thecomplaint is related to a party in a failed transaction. A resolution ofthe complaint is facilitated and restitution is provided to one of theparties upon resolving the complaint.

In the following embodiments, for purposes of explanation, numerousspecific details are set forth in order to provide a thoroughunderstanding of the present invention. It will be evident, however, toone skilled in the art that the present invention may be practicedwithout these specific details.

Terminology

In the following embodiments, the term “transaction” or “transactions”refers to any communications between two or more entities and is to beconstrued to include, but not limited to, commercial transactionsincluding sale and purchase transactions, online-auction transactionsand other like transactions.

Transaction Facility

FIG. 1 is a block diagram illustration of an exemplary network-basedtransaction (or commerce) facility 100 in the form of an “Internet”network-based transaction facility 110. While an exemplary embodiment ofthe present invention is described within the context of an auctionfacility, it will be appreciated by those skilled in the art that theinvention will find application in many different types ofcomputer-based, network-based, or electronic-commerce (e-commerce) basedfacilities.

The network-based transaction facility 110 includes one or more of anumber of types of front-end servers, namely pages servers 112 thatdeliver web pages (e.g., markup language documents), pictures servers114 that dynamically deliver images to be displayed within Web pages,listing servers 116, CGI servers 118 that provide an intelligentinterface to the back-end of network-based transaction facility 110, andsearch servers 120 that handle search requests to the network-basedtransaction facility 110. Email servers 121 provide, inter alia,automated email communications to users of the network-based transactionfacility 110. The network-based transaction facility 110 also includesadministrative application(s) functions 128 for providing functions forapplications running the network-based transaction facility 110.

The back-end servers include a database engine server 122, a searchindex server 124, and a credit card data server 126, each of whichmaintains and facilitates access to respective databases 123, 125, and127, respectively.

The Internet-based network-based transaction facility 110 may beaccessed by a client program 130, such as a browser (e.g., the InternetExplorer® distributed by Microsoft Corp. of Redmond, Wash.) thatexecutes on a client machine 132 and accesses the network-basedtransaction facility 110 via a network such as, for example, an Internet134. Other examples of networks that a client may utilize to access thenetwork-based transaction facility 110 include a wide area network(WAN), a local area network (LAN), a wireless network (e.g., a cellularnetwork), or the Plain Old Telephone Service (POTS) network.

Database Structure

FIG. 2 is a database diagram illustration of an exemplary database 200,maintained by and accessed via a database engine server 122, which atleast partially implements and supports the network-based transactionfacility 110. The database 200 may, in one embodiment, be implemented asa relational database and includes a number of tables having entries, orrecords, that are linked by indices and keys. In an alternativeembodiment, database 200 may be implemented as a collection of objectsin an object-oriented database.

Central to the database 200 is a user table 240, which contains a recordfor each user of the network-based transaction facility 110. A user mayoperate as a seller, buyer, or both, within the network-basedtransaction facility 110. The database 200 also includes item tables 242that may be linked to the user table 240. Specifically, the item tables242 includes a seller item table 244 and a data items table 246. A userrecord in user table 240 may be linked to multiple items that are being,or have been, auctioned via network-based transaction facility 110. Alink indicates whether the user is a seller or a bidder (or buyer) withrespect to items for which records exist within the item tables 242.Database 200 also includes a note table 248 populated with note recordsthat may be linked to one or more item records within the item tables242 and/or to one or more user records within the user table 240. Eachnote record within the note table 248 may include, inter alia, acomment, description, history or other information pertaining to an itembeing auctioned via network-based transaction facility 110, or to a userof network-based transaction facility 110.

A number of other tables are also shown to be linked (directly orindirectly) to the user table 240, namely a user past aliases table 250,a feedback table 252, a feedback details table 253, a transaction recordtable 260, an account balances table 258, an accounts table 256, a bidstable 254, a seller final value fee request table 270, a seller finalvalue fee request details table 272, a non-paying bidder complaintstable 262, a non-paying bidder complaint details table 264, and adispute and request table 282.

Non-Paying Bidder Complaint/Final Value Fee Request Record Tables

FIGS. 3-8 are diagrammatic representations of exemplary embodiments oftransaction record tables that are populated with records or entries fornon-performing party complaints and final value fee requests relating tofailed transactions (e.g., failed Internet based auction transactions)that have been facilitated by network-based transaction facility 110.Such transaction record tables may be stored in the non-paying biddercomplaints table 262, the non-paying bidder complaint details table 264,the seller final value fee request table 270, or the seller final valuefee request details 272.

FIG. 3 is a diagrammatic representation of an exemplary non-payingbidder items table 300 of the database illustrated in FIG. 2. Referringto FIG. 3, non-paying bidder (NPB) items table 300 includes an item no.column 302, a seller user identifier (ID) column 304, a NPB user IDcolumn 306, a reason for failed transaction column 308, a notice datecolumn 310, and a notice reason column 312.

The item no. column 302 stores item identifiers of items involved infailed transactions. The seller user ID column 304 stores user IDs ofsellers who auctioned the item in item no. column 302. The NPB user IDcolumn 306 stores user IDs of buyers who did not follow through on atransaction related to the items identified in the item no. column 302.The reason for failed transaction column 308 stores reasons why thetransaction failed that may be given by a seller. For example, reasonsmay include a buyer failing to purchase an item or providing afraudulent check to pay for the item.

The notice date column 310 stores the date a notice was sent to therespective buyer identified in the NPB user ID column 306 that he/shehas not completed the transaction for the item identified in therespective item no. column 302. The notice reason column 312 stores thereasons why the notice was sent. For example, the notice can be sentbecause a seller filed a final value fee refund request or the sellerfiled a NPB alert against the buyer.

FIG. 4 is a diagrammatic representation of an exemplary non-payingbidders table 400 of the database illustrated in FIG. 2. Referring toFIG. 4, the non-paying bidders table 400 includes a NPB user ID column402, an item no. column 404, a valid warning count column 406, a NPBtick column 408, a reason for NPB tick column 410, and a suspendedstatus column 412.

The NPB user ID column 402 stores the user IDs of buyers in which acomplaint has been filed. The buyers listed in the NPB user ID column402 are buyers involved in failed transactions. The item no. column 404stores identifiers of items involved in transactions in which the buyerlisted in the NPB user ID column 402 was the winning bidder and hasfailed to complete the transaction for the item.

The valid warning count column 406 stores a count value on the number oftimes the NPB received a warning for being a “non-paying bidder” or forfailing to complete a transaction. The NPB tick column 408 stores thenumber of times the NPB has been involved in a failed transaction inwhich the NPB was at fault. The reason for NPB tick column 410 storesthe reasons for the NPB ticks. The suspended status column 412 storesthe status of the NPB to participate on the network-facility. Forexample, after a certain number of NPB ticks, the NPB can be suspendedfrom participating in an on-line auction on the network-based facility.

FIG. 5 is a diagrammatic representation of an exemplary sellerscomplaint table 500 of the database illustrated in FIG. 2. Referring toFIG. 5, the sellers complaint table 500 includes a seller user ID column502, a NPB user ID column 504, a date of complaint column 506, a reasonfor complaint column 508, and a status of complaint column 510.

The seller user ID column 502 stores the user IDs of sellers filing NPBcomplaints. The NPB user ID column 504 stores user IDs of buyers againstwhich a NPB complaint has been filed. The date of complaint column 506stores the date in which the NPB complaint was filed. The reason forcomplaint column 508 stores the reasons why the seller filed the NPBcomplaint. The status of complaint column 510 stores the status of thecomplaint. For example, the status can indicate that the complaint hasbeen resolved or if it is pending.

FIG. 6 is a diagrammatic representation of an exemplary sellers finalvalue fee (FVF) request table 600 of the database illustrated in FIG. 2.Referring to FIG. 6, the sellers FVF request table 600 includes asellers user ID column 602, a NPB user ID column 604, an item no. column606, an action desired column 608, a reason for FVF credit column 610, acredit date column 612, and a credit amount column 614.

The sellers user ID column 602 stores the user IDs of sellers filing aFVF refund request. The NPB user ID column 604 stores the user IDs ofthe NPB related to the FVF refund request by the seller. The item no.column 606 stores an identifier of the item related to the FVF refundrequest. The action desired column 608 stores the requests of theseller. The seller may request a refund or a credit for futuretransactions.

The reason for FVF credit column 610 stores the reason for the credit.For one embodiment, the following reasons are not valid reasons forfiling a FVF credit: (1) the bidder paid, returned it and seller issueda refund; (2) Seller and Buyer mutually agreed not to complete thetransaction; or (3) sale price to high bidder was lower than final highbid. The credit date column 612 stores the date in which a refund or acredit for future transactions was given. The credit amount column 614stores the amount of the credit or refund given.

FIG. 7 is a diagrammatic representation of an exemplary non-payingbidder appeal table 700 of the database illustrated in FIG. 2. Referringto FIG. 7, the NPB table 700 includes an item no. column 702, selleruser ID column 704, NPB user ID column 706, reason for failedtransaction column 708, reason for appeal column 710, and an appeal codecolumn 712.

The item no. column 702 stores item identifiers related to failedtransactions. The failed transaction has caused an NPB to have a “tick”or count against him in which the NPB is considered at fault. The selleruser ID column 704 stores user IDs of sellers who auctioned the item inthe item no. column 702 and filed a NPB complaint or alert against theNPB. The NPB user ID column 706 stores user IDs of buyers who did notfollow through on a transaction related to the items identified in theitem no. column 702.

The ‘reasons for failed transaction’ column 708 stores reasons why thetransaction failed. For example, reasons may include a buyer failing topay for an item, providing a fraudulent check to pay for the item, orfalsely claiming the auctioned item was not received. The reason forappeal column 710 stores reasons why the NPB is appealing a NPB tick. Avalid reason for appeal can be that the NPB did pay for the item and theseller is providing a false complaint to obtain a FVF refund or credit.The appeal code column 712 stores codes related to the appeal. Forexample, the codes can indicate if the appeal is granted and the NPBtick is taken away or if the appeal is denied.

The above record tables are exemplary and additional column entries ortables can be used by network-based transaction facility 110 to provideservices such that users of network-based transaction facility 110 mayfile complaints for a bidder or buyer (“non-paying bidder”) who hasfailed to follow through on a transaction (e.g., an online auctionsale). Furthermore, the network facility 100 can also provide a finalvalue fee (FVF) refund request or credit service for sellers involved ina failed transaction. The network-based transaction facility 110 canalso keep track of NPB and suspend the NPB if involved in more than acertain number of failed transactions.

In the following operations, a party is able to file a complaint againsta bidder (“non-paying bidder”) who has failed to follow through on atransaction (e.g., an auction sale) after a certain period of time fromthe end of the sale. A notification is provided to the non-paying bidder(“NPB”) so that the seller and a bidder can communicate with each otherto resolve the complaint or complete the transaction. If the partiescannot resolve the complaint after a certain period of time, the selleris allowed to file a FVF refund request for the FVF that the seller mayhave paid to facilitate the sale on the network-based facility. A NPBcount or “tick” will be maintained for every failed transaction in whichthe NPB is involved.

Filing a Non-Paying Bidder Alert or Complaint

FIGS. 8A through 8D are flow charts illustrating an exemplary operation800 for a network-based facility to handle non-paying bidders and tohandle final value fee refund requests. The following exemplaryoperation 800 utilizes the record tables of FIGS. 3-7 and otherinformation contained in the database as shown in FIG. 2.

Referring to FIG. 8A, for purposes of explanation, operation 800 beginsat operation 802 after an end of an auction. At operation 804, a sellerwho was involved in a failed transaction with a buyer can file anon-paying bidder (NPB) complaint or alert. For one embodiment, theseller, however, must wait a predetermined time period (e.g., the atleast 7 calendar days) before a complaint can be filed. To learn aboutthe NPB program, the seller can access an interface such as interface902 shown in FIG. 9 to learn more about the NPB program.

At operation 806, if the seller does not wish to file a complaint oralert, operation 800 ends. If the seller does wish to file a complaint,operation 800 can continue to operation 826, 862, or 808. At operation808, a determination is made if the seller has waited at least 7 daysand no more than 30 days. The waiting period is to give the bidder anopportunity to complete the transaction before the seller can file acomplaint or request a final value fee refund or request.

If the seller has not waited at least 7 days and no more than 30 days,operation 800 returns to operation 804. If after the 7 day waitingperiod, but before 30 days after end of auction, at operation 810, theseller may file a NPB complaint. For example, interfaces such asinterfaces 1002 and 1010, as shown in FIGS. 10A and 10B, can bepresented to the seller. The seller can then enter information such asUser ID, Password, and Item Number as shown in windows 1004 and 1006.The seller can also enter reasons for the complaint as shown in window1010.

At operation 812, the information entered by the seller is captured orstored in a database such as that shown in FIG. 2. An interface such asinterface 1030 shown in FIG. 10C can be presented to the sellerindicating that NPB complaint or alert has been completed. Operation 800then continues to operation 822 in FIG. 8B.

Referring to FIG. 8B, at operation 822 a determination is made if thereasons for the complaint are at least one of the following:

-   -   1) Bidder paid, returned item and seller issued a refund;    -   2) The parties mutually agreed not to complete the transaction;        or    -   3) Sale price too high and bidder bid price was lower than final        high bid.

If the reasons for the complaint are at least one of the above reasons,operation 800 continues at operation 842 in FIG. 8C. If not, operation800 continues to operation 824.

At operation 824, an email is sent to both bidder/buyer and sellerinforming the parties of the reason for complaint, item number, and thatthe bidder will get a NPB tick if the complaint is not resolved. Thebuyer is informed that the seller has filed a complaint. If the buyerbelieves the seller has made false statements, the buyer can inform thenetwork-based transaction facility 110. For example, the buyer can sendan email to a “safeharbor” within the network-based transaction facility110.

At operation 826, the buyer and seller are asked to resolve differencesamong themselves. This notification can be a separate email or containedin the email of operation 824. For one implementation, the email to theNPB can encourage the buyer to leave negative feedback for the seller ifthe buyer responded during the mediation period and the seller did notrespond and is now filing a FVF credit request.

At operation 828, a determination is made if the buyer and seller haveresolved their differences (e.g., completed the transaction and/orsatisfied obligations imposed by a transaction agreement). If theparties have not resolved their differences, operation 800 continues tooperation 862 in FIG. 8D. If the parties have resolved theirdifferences, at operation 830 the process ends. The seller cannot file aFVF refund request because the transaction has been completed and no FVFcredit is given. Furthermore, the buyer is not given a NPB tick.

Filing a Final Value Fee Refund Request

Referring to FIG. 8C, if the reason for filing the complaint is one ofthe reasons stated in operation 822 of FIG. 8B, operation 800 continuesto operation 842. At operation 842, the seller is taken to an FVF onlinecredit form such as that shown in interfaces 1102, 1108, or 1120 ofFIGS. 11A through 11C. For one implementation, the seller is not allowedto file a FVF credit until at least 10 days have passed since the sellerfiled the NPB complaint. Furthermore, the FVF credit request cannot bemade more than 60 days after the end of auction.

At this point, the seller can request a FVF refund or credit because atransaction was not completed for valid reasons. At operation 844, adetermination is made whether the seller wants to file a FVF refund orcredit request. At operation 846, if the seller does not wish to file aFVF credit request, the seller can leave interfaces 1102, 1108, or 1120and the process ends. If, however, the seller does wish to file a FVFcredit request, operation 800 continues to operation 848.

At operation 848, the seller's user ID, item number, and reasons forcomplaint can be auto-populated on the online form. Alternatively, theseller can enter the aforementioned information as shown in windows 1104and 1106 in FIG. 11A. The seller can then enter his/her password and howmuch was paid for the item in windows 1104 and 1110, 1122, and 1124 asshown in FIGS. 11A through 11C.

At operation 850, the FVF credit is automatically posted to seller'saccount. The buyer is not given a NPB tick because there was a validreason on why the transaction was not completed. At operation 852, anemail is sent to the buyer (cc: Seller) to inform the buyer that theseller has requested a FVF credit for the reasons given. The buyer isasked to email the “safeharbor” if this is not valid. For example, ifthe buyer did complete the transaction, then the seller is fraudulentlyrequesting a FVF refund.

At operation 854, a determination is made if the buyer has sent an emailto the “safeharbor.” If an email was not sent, at operation 856, theprocess ends and the seller is given a FVF credit. If the buyer doessend an email to the “safeharbor”, at operation 858, the seller is notgiven a FVF credit and the process ends. Here, a further determinationcan be made by the network facility to inquire about the validity of thebuyer's and seller's statements.

Filing a Non-Paying Bidder Appeal

Referring to FIG. 8D, at operation 862, a determination is made if a NPBcomplaint has been filed and if a predetermined time period (e.g., 10days) has elapsed since the NPB complaint was filed. If the complainthas been filed and if 10 days have not elapsed, operation 800 continuesto operation 826. Otherwise, operation 800 continues to operation 808.

If a NPB complaint has been filed and 10 days or more have elapsed,operation 800 continues to operation 864. At operation 864, adetermination is made if less than a predetermined time period (e.g., 60days) has elapsed since the end of the auction. If more than 60 dayshave elapsed, at operation 866, operation 800 ends and no FVF creditrequest is filed. Here, approximately two months have passed since theauction, which exceeds a maximum time limit to file a FVF creditrequest.

If less than 60 days have elapsed since the end of the auction, atoperation 868, a determination is made if the seller wants to file a FVFcredit request. If the seller does not want to file a FVF creditrequest, operation 800 ends at operation 866. If the seller does want tofile a FVF credit request, at operation 870, the seller is taken to theFVF online credit form such as that shown in interfaces 1102, 1108, or1120 of FIGS. 11A through 11C. For one embodiment, the user ID, itemno., and reason for the complaint are autopopulated on the FVF onlineform.

At operation 872, after the seller completes the FVF online form, theFVF credit is automatically posted to the seller's account and a NPBtick is given to the NPB. For example, the seller's account can becredited within 24 hours of a FVF credit request being filed. The NPB isnotified via email that a tick has been given and is given theopportunity to appeal the tick.

At operation 874, a determination is made if the NPB wants to appeal thetick. If the NPB does not want to appeal the tick, operation 800continues to operation 830. If the NPB does want to appeal the tick, theNPB is taken to an online NPB appeal form such as interface 1202 shownin FIG. 12.

At interface 1202, the NPB is given a window 1204 to enter a user ID andpassword and a window 1206 to enter the item number. Interface 1202 alsoprovides a window 1208 for the NPB to enter a message on why the tickshould not be given to him. After the NPB completes the NPB appeal form,the network-based facility can give the NPB a confirmation such asinterface 1302 shown in FIG. 13. Furthermore, the seller and NPB canaccess an interface 1402 shown in FIG. 14 to determine number of creditrequests and NPB tick scores for users.

For one embodiment, the NPB is given a maximum number of ticks (e.g., 3ticks) before the NPB is suspended from participating in onlineauctions. If the NPB tick goes from 3 to 2, the NPB can be reinstated.If the FVF credit for the seller is reversed, the NPB tick can later bereversed and the tick can be removed. For another embodiment, the NPBmust receive at least three NPB ticks from three different sellersbefore that bidder is automatically suspended. If, for example, a bidderreceives three NPB ticks from Seller A and one NPB tick from Seller B,the bidder should not be automatically suspended (NPB tick score=2).However, the bidder should be flagged so that the operator of thenetwork-based transaction facility may manually review the bidder andhave the ability to suspend the bidder.

Submission of Complaints Between Parties

FIG. 15 is a diagrammatic representation of an exemplary embodiment of atransaction record table that is populated with records or entries fordisputes and requests. Such a transaction record table may be stored inthe disputes and requests table 282 of FIG. 2.

FIG. 15 is a diagrammatic representation of an exemplary disputes andrequests table 1500 of the database illustrated in FIG. 2. For example,the dispute and requests table may store information relating a disputecaused by failed transactions.

Referring to FIG. 15, the disputes and requests table 1500 includes atype column 1505, a counterparty column 1510, a transaction identifiercolumn 1515, a date column 1520, an amount column 1525, a reason column1530, a filed on column 1535, a status column 1540, and an action column1545.

The type column 1505 stores the type of dispute. The counterparty column1510 stores a name of a counter party to the dispute. The transactionidentifier column 1515 stores an identifier of the transaction recordthat is in dispute. The date column 1520 stores the date of thetransaction in dispute. The amount column 1525 stores an amount of thetransaction in dispute. The reason column 1530 stores a reason for thedispute. Examples of entries to be stored in the reason column 1530include unauthorized, non-receipt, merchandise, duplicate, or other.

The filed on column 1535 stores the date the dispute was filed. Thestatus column 1540 stores an indicator of the status of the dispute. Forexample, the entry stored in the status column 1540 may include “caseclosed,” “waiting for your response,” (which indicates when the disputeis waiting for a response from the accused party), and “reviewing yourresponse,” (which indicates when the dispute is in a review workflowstate). The action column 1545 stores an indication of an action to beperformed by one of the parties to the transaction, such as “resolved”or “cancel.”

FIG. 16 is a flow chart illustrating an exemplary dispute resolutionprocess flow 1600 for a network-based facility to resolve disputeswithout agent intervention. The following exemplary operation mayutilize the record table of FIG. 15 and other information contained inthe database as shown in FIG. 2.

Referring to FIG. 16, for purposes of explanation, the disputeresolution process flow 1600 begins at block 1601 after an end of anauction.

At block 1601, the network-based transaction facility 110 receives acomplaint from a party (e.g., a complaining party) to a transaction. Forexample, the network-based transaction facility 110 may receive acomplaint from a buyer related to a transaction in dispute between thebuyer and seller. For instance, the buyer may submit a complaintregarding a purchased item that has not been received from a sellerrelated to the transaction.

In one embodiment, the complaint includes complaint information. Thecomplaint information may include an identifier of the counter party(e.g., an accused party) to the dispute, the transaction identifier ofthe transaction in dispute, the date of the transaction, the amount ofthe transaction, the reason for the complaint, and the date thecomplaint was filed. The complaint information may be stored in the opendispute and request table 1500 as described above.

Upon submitting the complaint, the complaining party may view thecomplaint via the network-based transaction facility 110. For example,FIG. 17 illustrates one embodiment of a transaction disputes view 1700.The transaction disputes view 1700 includes a show list box 1710 and adisputes table 1715. The show list box 1710 toggles the types oftransactions to be displayed in the disputes view 1700.

The disputes table 1715 includes a type column 1720, a counterpartycolumn 1725, a transaction ID column 1730, a date column 1735, an amountcolumn 1740, a reason column 1745, a filed on column 1750, a statuscolumn 1755, and an action column 1760.

The type column 1720 displays the type of dispute. The counterpartycolumn 1725 displays an identifier of the counterparty to the dispute.The transaction ID column 1730 displays an identifier of the transactionin dispute. In one embodiment, upon selecting a specific transaction ID,the user is shown additional details relating to the transaction indispute.

The date column 1735 displays the date of the transaction in dispute.The amount column 1740 displays the amount in dispute. The reason column1745 displays a brief reason for the complaint. The filed on column 1750displays the date the complaint was received by the network-basedtransaction facility 110. The status column 1755 displays the currentstatus of the complaint. In one embodiment, upon selecting a specificstatus indicator, the user is shown a chargeback details view relatingto the complaint. For example, FIG. 18 illustrates one embodiment of achargeback details view 1800. The action column 1760 displays an actionthat may be performed by the party that submitted the complaint. Forexample, the complaining party may select to cancel a complaint of aspecific transaction in dispute. The complaining party may cancel asubmitted complaint for a variety of reasons, such as, having receivedthe auctioned item, having received a refund or receiving a payment, forthe item, among other reasons. Upon expressing an interest to cancel thecomplaint, the network-based transaction facility 110 may also promptthe complaining party to acknowledge that the related complaint has beensatisfactorily resolved and the network-based transaction facility 110may express to the complaining party that further investigation willcease and the status of the complaint will be set to “closed”immediately.

At block 1603, the network-based transaction facility 110 determineswhether the complaint is a ‘Not As Described’ (NAD) type complaint. Inone embodiment, a NAD complaint indicates the buyer has received apurchased item that was not as described, for example, in an onlinelisting for the item. If the complaint is a NAD type complaint, controlpasses to block 2503. If the complaint is not a NAD type complaint,control passes to block 1605.

At block 1605, the network-based transaction facility 110 determineswhether the complaint includes tracking information for the shippeditem. If the complaint includes tracking information, control passes toblock 1650. If the complaint does not include tracking information,control passes to block 1607.

At block 1607, the network-based transaction facility 110 sends arequest for resolution information, in the exemplary form of aresolution form, over the network to a second party to the transaction.The automatic submission of the resolution form allows an accused partyto answer or appeal the submitted complaint. For example, FIG. 19illustrates one embodiment of a resolution form 1900. The resolutionform 1900 includes radio buttons which the accused party may select fromto resolve the dispute. Radio button 1910 indicates the accused partymay provide tracking information relating to the dispute. Radio button1920 indicates the accused party may provide proof of previous refund.Radio button 1930 indicates the accused party accepts liability. Uponselecting one of the radio buttons 1910, 1920, or 1930, the accusedparty may select the continue button 1940 to submit a resolutionresponse back to the network-based transaction facility 110.Alternatively, the party may select the cancel button 1945 to not submita resolution response.

At block 1610, the network-based transaction facility 110 receives therequested resolution information (or response) over the network from theaccused party.

At block 1612, the network-based transaction facility 110 determineswhether the accused party selects to resolve the dispute by providingproof of a refund. If the proof of refund was indicated, control passesto block 1615. If the proof of refund was not indicated, control passesto block 1640.

At block 1615, the network-based transaction facility 110 sends arequest for proof of the refund to the accused party. For example, FIG.20 illustrates one embodiment of a provide proof of refund view 2000.The provide proof of refund view 2000 includes a radio button 2010 and aradio button 2020. Selecting the radio button 2010 and the continuebutton 2030 indicates the refund was issued via the network-basedtransaction facility 110 whereby the network-based transaction facility110 submits a request for a refund transaction identifier for display bythe accused party. For example,

FIG. 21 illustrates one embodiment of a provide proof of refund view2100. The provide proof of refund view 2100 includes a refundtransaction ID field 2110. The refund transaction ID field 2110 promptsthe accused party to provide the transaction identifier associated withthe refund.

Referring again to FIG. 20, selecting the radio button 2020 and thecontinue button 2030 indicates the refund was issued via a facilityother than the network-based transaction facility 110, whereby a requestfor an alternative means of proof of refund is requested from theaccused party. For example, FIG. 22 illustrates one embodiment of aprovide alternate proof of refund information view 2200 that prompts theaccused party to provide any details of the refund transaction, such asthe name of the financial institution that provided the funds, anaccount name of the account from which the funds were obtained, a refundtransaction identifier, etc. This information may be provided via a webform (not shown), via fax, via electronic mail (including an attachedelectronically scanned document), among other examples well known tothose of ordinary skill in the art.

At block 1617, the network-based transaction facility 110 receives theproof of refund information.

At block 1623, the network-based transaction facility 110 confirms theproof of refund. For example, the network-based transaction facility 110may confirm a refund issued via the network-based transaction facility110 is valid by comparing the received proof of refund information withthe records stored on the network-based transaction facility 110. Also,if the refund was issued with a facility other than the network-basedtransaction facility 110, the network-based transaction facility 110 mayautomatically or manually validate the refund information with a thirdparty, such as a third party financial institution. If the refund isvalidated, control passes to block 1635. If the refund is not validated,control passes to block 1626.

At block 1626, the network-based transaction facility 110 approves thecomplaint. For example, the network-based transaction facility 110 maydetermine the complaint is valid and rejects the accused contention thata refund was made.

At block 1629, the network-based transaction facility 110 providesrestitution to the complaining party. For example, the network-basedtransaction facility 110 may facilitate a refund payment, facilitate apartial refund payment, facilitate a stop payment, or facilitate thecompletion of the transaction (e.g., facilitate performance, such asfacilitate payment or facilitate the delivery of the auctioned item),etc. For instance, the network-based transaction facility 110 mayfacilitate the transfer of funds from an account associated with theaccused party to provide restitution to the complaining party.

At block 1632, the network-based transaction facility 110 notifies theparties of the decision. For example, the network-based transactionfacility 110 may email both parties of the decision in favor of thecomplaining party and the decision that the accused party is to providerestitution to the complaining party. The notification may also includeinformation related to the resolution of the complaint.

Referring back to block 1635, the network-based transaction facility 110rejects the complaint. For example, the network-based transactionfacility 110 may determine the complaint to be invalid based on theproof of refund information received from the accused party.

At block, 1637, the network-based transaction facility 110 notifies theparties of the decision. For example, the network-based transactionfacility 110 may email both parties of the decision in favor of theaccused party and may also include information related to the resolutionof the complaint.

Referring back to block 1640, the network-based transaction facility 110determines whether the accused party selected to resolve the dispute byproviding tracking information (e.g., a tracking number, shippingcarrier being used, date shipped, destination address, current location,etc.). If tracking information has been received, control passes toblock 1642. If tracking information has not been received, controlpasses to block 1680.

At block 1642, the network-based transaction facility 110 sends arequest for tracking information to the accused party. For example, FIG.23 illustrates one embodiment of a provide tracking information view2300. The provide tracking information view 2300 includes a trackingnumber field 2310 and a shipping company field 2320. The tracking numberfield 2310 prompts the accused party to provide a shipping trackingnumber of the auctioned item in dispute. The shipping company field 2320prompts the accused party to provide a name of a shipping carrier thatshipped the auctioned item, such as United Parcel Service (UPS), UnitedStates Postal Service (USPS), Federal Express (FedEx), Airborne Express,DHL Worldwide Express, or among others.

At block 1645, the network-based transaction facility 110 receives theshipping tracking information from the accused party.

At block 1650, the network-based transaction facility 110 determineswhether the shipping tracking information is valid. For example, thenetwork-based transaction facility 110 may electronically determinewhether the shipping tracking information is valid based an automaticcomparison of the received shipping tracking information and thetracking information stored on a computer of the related shippingcarrier over a network. If the tracking information is valid, controlpasses to block 1655. If the tracking information is not valid, controlpasses to block 1665. In one embodiment, an agent associated with theshipping information will manually confirm the shipping trackinginformation with the related shipping carrier via telephone, fax,electronic mail, among other communications mechanisms well known tothose or ordinary skill in the art.

At block 1655, the network-based transaction facility 110 rejects thecomplaint. For example, the network-based transaction facility 110 mayreject the complaint because a purchased item is in transit based on thereceived shipping tracking information.

At block 1660, the network-based transaction facility 110 notifies theparties of the decision. For example, the network-based transactionfacility 110 may email both parties of the decision in favor of theaccused party and the decision based on the evidence that the item hasbeen shipped to the complaining party. The notification may also includeinformation related to the resolution of the complaint, such as thetracking information and other resolution information.

At block 1665, the network-based transaction facility 110 approves thecomplaint. For example, the network-based transaction facility 110 mayapprove the complaint because there is no proof the purchased item wassent to the complaining party based on the received trackinginformation.

At block 1670, the network-based transaction facility 110 providesrestitution to the complaining party. For example, the network-basedtransaction facility 110 may facilitate a refund payment, facilitate apartial refund payment, facilitate a stop payment, or facilitate thecompletion of the transaction (e.g., facilitate performance, such asfacilitate payment or facilitate the delivery of the auctioned item),etc.

At block 1675, the network-based transaction facility 110 notifies theparties of the decision. For example, the network-based transactionfacility 110 may email both parties of the decision in favor of thecomplaining party and the decision that the accused party is to providerestitution to the complaining party. The notification may also includeinformation related to the resolution of the complaint.

Referring back to block 1680, the network-based transaction facility 110sends a request to accept liability to the accused party of the dispute.In one embodiment the network-based transaction facility 110 sends theaccused party an online form prompting the accused party for anyadditional details explaining the non-performance. For example, FIG. 24illustrates one embodiment of an accept liability view 2400. The acceptliability view 2400 displays information about the dispute 2410 and hasan additional comments field 2420. The additional comments field 2420prompts the accused party to provide comments for failing to perform thetransaction.

At block 1682, the network-based transaction facility 110 receives theaccept liability information related to the complaint.

At block 1684, the network-based transaction facility 110 approves thecomplaint based on the accused party's expressed acceptance ofliability.

At block 1685, the network-based transaction facility 110 providesrestitution to the complaining party. For example, the network-basedtransaction facility 110 may facilitate a refund payment, facilitatepartial refund payment, facilitate a stop payment, or facilitate thecompletion of the transaction (e.g., facilitate performance, such asfacilitate payment or facilitate the delivery of the auctioned item),etc.

At block 1690, the network-based transaction facility 110 notifies theparties of the decision. For example, the network-based transactionfacility 110 may email both parties of the decision in favor of thecomplaining party and the decision that the accused party is to providerestitution to the complaining party. The notification may also includeinformation related to the resolution of the complaint, such as thereasons for non-performance.

FIG. 25 illustrates one embodiment of a NAD process flow 2500 inrelation to the NAD type complaint as described above in conjunctionwith block 1603.

At block 2503, the network-based transaction facility 110 sends a NADform to the buyer. In one embodiment, an item is not as described if theseller misrepresents the item in a way that affects its value orusability. The NAD form enables the buyer to provide NAD information.For example, the NAD information may include information related to thecondition of the purchase made by the buyer. FIG. 26 illustrates oneembodiment of a NAD dispute form 2600. In one embodiment, the buyer mayuse the NAD dispute form 2600 to provide details about the condition ofthe purchase. For example, the buyer may select one or more of thefollowing checkboxes to indicate the condition of the delivery item. Forinstance, the buyer may select checkbox 2605 to report the item arrivedwith missing parts that prevent the item from being used (e.g., nocomputer processor, no motor, etc.); select checkbox 2610 to report theitem arrived with external damage to the item (e.g., scratches, cracks,chips, rips, dents, stains, odor, etc.); select checkbox 2615 to reportthe item arrived with a missing quantity (e.g., ordered 12 units butreceived 6, etc.); select checkbox 2620 to report the item arrivedinternally damaged (e.g., doesn't power on, doesn't play or plays witherrors (DVD, CD, software, etc.); select checkbox 2625 to report theitem arrived used when described as new (e.g., Original listing said itwas “new” or “mint”, etc.); select checkbox 2630 to report the itemarrived with shipping cost issues (e.g., shipping cost more thanexpected, etc.); select checkbox 2635 to report the item arrived withsales tax issues (e.g., sales tax more than expected, etc.); selectcheckbox 2640 to report the item that arrived is a different model,version, or size (e.g., incompatible operating system (Microsoft Windowsv. Macintosh), Motorcycle engine v. automobile engine, shoes too smallto wear, etc.); select checkbox 2645 to report the item arrived withdifferent design/pattern (e.g., floral v. striped, etc.); selectcheckbox 2650 to report the item that arrived is of a different categoryentirely (e.g., ordered a book, got a brick, etc.); select checkbox 2655to report the item that arrived is of a different material (e.g., cottonv. silk, glass v. plastic, etc.); select checkbox 2660 to report theitem that arrived is a less valuable substitute (e.g., less powerful(Intel Corporation Pentium 4 processor v. Pentium 3 processor), lowerperceived quality (branded v. generic), etc.); select checkbox 2665 toreport the time-sensitive item arrived late (e.g., concert tickets,etc.); select checkbox 2670 to report the item that arrived has a colordifference (e.g., slight (light green v. dark green), moderate (green v.teal), serious (green v. red), etc.); select checkbox 2675 to report theitem that arrived is ruined food/plants (e.g., spoiled, dead/weltered,etc.); select checkbox 2680 to report the item that arrived is a copy ofan original (e.g., bootleg or pirated copy (music, movie, software,etc.); photocopy, etc.); select checkbox 2685 to report the item thatarrived is an imitation (e.g., fake Rolex, fake Gucci purse, fake Armanisuit, etc.); and/or select checkbox 2690 to report an empty box arrival(e.g., empty or contains unrelated material, etc.). Furthermore, theForm 2600 allows the buyer to provide additional details in the textbox2695.

At block 2506, the network-based transaction facility 110 receives theNAD information from the buyer. NAD information may include, forexample, information collected using the NAD dispute form 2600.

At block 2509, the network-based transaction facility 110 sends aDispute Complaint Response Form to the seller. For example, FIG. 27illustrates one embodiment of a resolve complaint form 2700 to obtainNAD resolution information from the seller. The resolve complaint form2700 allows a seller to respond to the complaint. The resolve complaintform 2700 includes radio buttons that the seller may select to indicatea manner to resolve the dispute. A radio button 2710 enables the sellerto indicate a willingness to issue the buyer a full refund to resolvethe complaint. A radio button 2720 enables the seller to indicate awillingness to provide the buyer a full refund if the NAD item isreturned in an attempt to resolve the complaint. A radio button 2730enables the seller to indicate a willingness to offer the buyer apartial refund in an attempt to resolve the complaint. A radio button2740 enables the seller to indicate that the buyer has already beenrefunded and a seller will provide proof of the refund. A radio button2750 enables the seller to indicate disagreement with the complaint andto provide additional information.

At block 2512, the network-based transaction facility 110 receives theNAD resolution information from the Seller. At decision block 2515, thenetwork-based transaction facility 110 determines whether the sellerprovided an indication to refund the buyer for the NAD item. If theseller provides an indication to refund the buyer, control passes toblock 2518. If the seller did not provide an indication to refund thebuyer, control passes to block 2521.

At block 2518, the network-based transaction facility 110 facilitatespayment of the refund to the buyer. In one embodiment, the network-basedtransaction facility 110 may automatically transfer the appropriaterefund amount from a financial account of the seller to a financialaccount of the buyer.

At block 2521, the network-based transaction facility 110 determineswhether the seller provided an indication to refund the buyer after theNAD item is returned. If the seller provided an indication to refund thebuyer after the NAD item is returned, control passes to block 2524. Ifthe seller did not provide an indication to refund the buyer after theNAD item is returned, control passes to block 2536.

At block 2524, the network-based transaction facility 10 notifies thebuyer to return the NAD item and provide the tracking information (e.g.,tracking number, shipping carrier being used, date shipped, destinationaddress, current location, etc.).

At block 2527, the network-based transaction facility 110 receives thetracking information from the buyer.

At block 2530, the network-based transaction facility 110 sends thetracking number to the seller.

At block 2533, the network-based transaction facility 110 receivesconfirmation from the seller of receipt of the NAD item and facilitatesa refund to the buyer. In one embodiment, the network-based transactionfacility 110 may automatically transfer the appropriate refund amountfrom a financial account of the seller to a financial account of thebuyer.

At decision block 2536, the network-based transaction facility 110determines whether the seller provided an indication to provide apartial refund to the buyer. If the seller provides an indication tonegotiate a partial refund with the buyer for the NAD item, controlpasses to block 2537. If the seller does not provide an indication tonegotiate a partial refund with the buyer for the NAD item, controlpasses to block 2551.

At block 2537, the network-based transaction facility 110 sends theseller a partial refunds form to the seller to obtain the partial refundamount offered by the seller to the buyer for the NAD item. In thisfashion, both parties may negotiate a fair price for the item withouthuman intervention. For example, FIG. 28 illustrates one embodiment ofthe Partial Refund Offer Form 2800. The partial refund offer form 2800may include a transaction identifier (ID) field 2805, a name field 2810,an electronic mail (e-mail) field 2815, a total amount field 2820, abuyer's requested refund field 2825, a gross refund amount field 2830, anet refund amount field 2835, a fee refunded field 2840, a source offunds field 2845, a note to buyer field 2859, and ship to field 2855.The transaction identifier field 2805, the name field 2810, theelectronic mail field 2815, the total amount field 2820 indicate thecurrent transaction ID, name, e-mail address, and purchase amount of thetransaction in dispute. If the buyer provides a refund amount to settlethe dispute, for example, within the complaint, the buyer's requestedrefund will display in the buyer's requested refund field 2825. Theseller may indicate a partial refund amount offer to resolve thecomplaint in the gross refund amount field 2830. If additional fees wererelated to the original complaint, the net refund and fee refunded aredisplayed in the net refund amount field 2835 and the fee refunded field2840. The source of funds field 2845 may indicate to the seller whichfinancial account the funds will be taken from. The seller may provide amessage to buyer, for example, to help negotiate the partial refundoffer, with the note to buyer field 2850. The ship to field 2855 allowsthe seller to indicate a mailing address to return the NAD item if thepartial refund offer is rejected and, for example, is investigated aswill be described.

At block 2538, the network-based transaction facility 110 receives thepartial refund amount offer from the seller.

At block 2539, the network-based transaction facility 110 notifies thebuyer of the partial refund amount offer. In this fashion, the buyer maydecide whether to accept the partial refund amount. In one embodiment,the buyer may offer a counter-proposal, by which the seller and buyermay continue to negotiate a final partial refund amount.

At block 2542, the network-based transaction facility 110 receives theresponse to the partial refund offer amount from the buyer.

At decision block 2542, the network-based transaction facility 110determines whether the buyer agrees to the partial refund offer. If thebuyer agrees to the partial refund offer, control passes to block 2545.If the buyer does not agree to the partial refund offer, control passesto block 2548.

At block 2545, the network-based transaction facility 110 facilitatesthe payment of the partial refund to the buyer. In one embodiment, thenetwork-based transaction facility 110 may automatically transfer theappropriate refund amount from a financial account of the seller to afinancial account of the buyer; automatically prepare a check to bemailed to the buyer, etc.

Referring back to decision block 2551, the network-based transactionfacility 110 determines whether the seller provided an indication toprovide a proof of refund. If the seller provided an indication toprovide a proof of refund, control passes to block 1612 and the processflow continues as described above. If the seller did not provide anindication to provide a proof of refund, control passes to block 2554.

At decision block 2554, the network-based transaction facility 110determines whether the buyer indicated the reason for the NAD complaintis because of an empty box or a different category, for example asdescribed above. If the complaint is for an empty box/differentcategory, control passes to block 2557. If the complaint is not for anempty box/different category, control passes to block 2563.

At block 2557, the network-based transaction facility 110 requests thebuyer to provide a copy of a police report regarding the empty box itemor of a different category. In this fashion, for example, the submissionof frivolous complaints may be reduced. In one embodiment, thenetwork-based transaction facility 110 might also only require a policereport if the cost of the item is greater than a predetermined amount(e.g., $200).

At block 2560, the network-based transaction facility 110 receives acopy of the police report. In one embodiment, the network-basedtransaction facility 110 receives a scan copy of the police report or afaxed copy of the police report.

At block 2563, the network-based transaction facility 110 sends adisagree with complaint form to the seller. For example, FIG. 29illustrates a disagree with complaint form 2900. The seller may respondto each of the buyer's reasons for filing the complaint (2910, 2915)within a textbox (2930, 2935).

At block 2566, the network-based transaction facility 110 receives anexplanation from the seller.

At block 2548, the network-based transaction facility 110 performs aninvestigation of the complaint. The network-based transaction facility110 may perform the investigation automatically without humanintervention, with human intervention, or a combination of both. Bothparties will be notified of the results of the investigation. Theinvestigation may determine to accept the complaint from the buyer andtherefore, require the seller to refund the buyer. Alternatively, theinvestigation may determine to reject the complaint and end theinvestigation. In one embodiment, if the complaint is accepted, thebuyer is required to return the item and provide tracking information(form not shown). After the network-based transaction facility 110confirms the seller has received the returned item, the network-basedtransaction facility 110 will facilitate the refund of funds to thebuyer. In one embodiment, the network-based transaction facility 110 mayautomatically transfer the appropriate refund amount from a financialaccount of the seller to a financial account of the buyer; prepare acheck to be mailed to the buyer, etc.

In one embodiment, the network-based transaction facility 110 might alsorequest additional information, as evidence, from which to base thedecision, such as a certificate of authentication from a third party, adigital photo of the disputed item, affidavits from a third partyregarding the disputed item, additional police reports, etc. Thisadditional information may be provided to the network-based transactionfacility 110 electronically or by other means.

In one embodiment, a third party agent may view the information relatedwith each dispute within a view (not shown), including the complaint,response to the complaint, and negotiation of partial refund, etc.Furthermore, each complaint may be prioritized for view based on thetransaction amount, language, a service level agreement, etc.

It should be understood that the process flows 1600 and 2500 are notlimited to the blocks as described above. For example, the network-basedtransaction facility 110 may wait a predetermined amount of time forresponses from the parties and/or remind parties to reply to requestsfor information within a predetermined amount of time. Furthermore, thenetwork-based transaction facility 110 may automatically accept thecomplaint, reject the complaint, and/or facilitate the performance ofrestitution if a party to the transaction does not respond within apredetermined amount of time. For example, if the seller does notrespond to a complaint within 10 days, the network-based transactionfacility 110 will approve the complaint. However, longer wait periodsmay be necessary to accommodate international shipping times (e.g., 15calendar days).

It should also be understood that the information exchanged in theprocess flows 1600 and 2500, as shown in FIGS. 16 and 25, may be storedas resolution information in a resolution information table of thedatabase illustrated in FIG. 2.

Furthermore, it is understood that the notification of the buyer andseller as described above is not limited to using online forms, asdescribed above. Rather, one of ordinary skill in the art will recognizeadditional mechanisms may be used to notify the parties includingelectronic mail, and text messaging, among other examples.

Exemplary Computing System

FIG. 30 is a diagrammatic representation of a machine, in an exemplaryform of a computer system 3000, in which a set of instructions forcausing the machine to perform any of the methodologies of the presentinvention may be executed. In alternative embodiments, the machine maycomprise a network router, a network switch, a network bridge, aPersonal Digital Assistant (PDA), a cellular telephone, a web applianceor any machine capable of executing a sequence of instructions thatspecify actions to be taken by that machine.

The computer system 3000 includes a processor 3002, a main memory 3004and a static memory 3006, which communicate with each other via a bus3008. The computer system 3000 may further include a video display unit3010 (e.g., a liquid crystal display (LCD) or a cathode ray tube (CRT)).The computer system 3000 also includes an alpha-numeric input device3012 (e.g., a keyboard), a cursor control device 3014 (e.g., a mouse), adisk drive unit 3016, a signal generation device 3020 (e.g., a speaker)and a network interface device 3022.

The disk drive unit 3016 includes a machine-readable medium 3024 onwhich is stored a set of instructions (i.e., software) 3026 embodyingany one, or all, of the methodologies described above. The instructions3026 is also shown to reside, completely or at least partially, withinthe main memory 3004 and/or within the processor 3002. The instructions3026 may further be transmitted or received via the network interfacedevice 3022. For purposes of this specification, the term“machine-readable medium” shall be taken to include any medium that iscapable of storing or encoding a sequence of instructions for executionby the machine and that cause the machine to perform any one of themethodologies of the present invention. The term “machine-readablemedium” shall accordingly be taken to include, but not limited to,solid-state memories, optical disks, and magnetic disks.

It will be appreciated that more or fewer processes may be incorporatedinto the method(s) illustrated in FIGS. 8A, 8B, 8C, 8D, 16, and 25without departing from the scope of the invention and that no particularorder is implied by the arrangement of blocks shown and describedherein. It further will be appreciated that the method(s) described inconjunction with FIGS. 8A, 8B, 8C, 8D, 16, and 25 may be embodied inmachine-executable instructions, e.g. software. The instructions can beused to cause a general-purpose or special-purpose processor that isprogrammed with the instructions to perform the operations described.Alternatively, the operations might be performed by specific hardwarecomponents that contain hardwired logic for performing the operations,or by any combination of programmed computer components and customhardware components. The methods may be provided as a computer programproduct that may include a machine-readable medium having stored thereoninstructions which may be used to program a computer (or otherelectronic devices) to perform the methods. Furthermore, it is common inthe art to speak of software, in one form or another (e.g., program,procedure, process, application, module, logic, etc.), as taking anaction or causing a result. Such expressions are merely a shorthand wayof saying that execution of the software by a computer causes theprocessor of the computer to perform an action or produce a result.

The exemplary embodiments of the present invention have been discussedabove within the context of a network-based transaction facility 110,which operates as a platform by which parties can establish an agreementto transact. It will, of course, be appreciated that the presentinvention is not limited to use within the context of such a tradingplatform, and may be deployed by any platform or service that isinvolved in a transaction. For example, the present invention could bedeployed by a payment service that facilitates the transfer of fundsbetween parties, a shipping service that is involved in the physicaltransport of products between parties or a services platform that allowsone party to deliver a service to another party in exchange for value.The term “network-based transaction facility” should be construed toinclude a network-based trading platform, a payment service, a shippingservice, or a services-delivery platform, for example.

Thus, a method and system for dealing with non-performing partiesrelated to network-based transactions has been described. In theforegoing specification, the invention has been described with referenceto specific exemplary embodiments thereof. It will, however, be evidentthat various modifications and changes may be made thereto withoutdeparting from the broader scope of the invention as set forth in theappended claims. The specification and drawings are, accordingly, to beregarded in an illustrative sense rather than in a restrictive sense.

1. A network based facility system that automatically resolves a subsetof transaction disputes, said network based facility system comprising:a computing system including a memory; and a set of the computerinstructions stored in said memory that, when executed by the computingsystem, cause the computing system to receive a complaint over a networkfrom a first party to a network-based transaction, the complaint beingassociated to the transaction, the first party being obligated to pay atransaction fee upon a completed transaction; determine if saidcomplaint is due to said transaction being cancelled upon mutualagreement between said first party and a second party; send a request,if said first party indicated that said transaction was cancelled uponmutual agreement, over the network to said second party to thetransaction requesting a notification if said transaction was notcancelled; and provide restitution of said transaction fee automaticallyto the first party if no notification specifying that said transactionwas cancelled is received from said second party.
 2. The network basedfacility system as set forth in claim 1, wherein the restitution to thefirst party is a refund of funds to the first party.
 3. The networkbased facility system as set forth in claim 1, wherein the restitutionto the first party is a partial refund of funds to the first party. 4.The network based facility system as set forth in claim 1, wherein therestitution is automatically provided directly from a financial accountrelated to the network based facility system to a financial accountrelated to the first party.
 5. The network based facility system as setforth in claim 1, wherein the process is further causes the computingsystem not to provide the restitution to the first party if said secondparty sends said notification specifying said transaction was notcancelled.
 6. The network based facility system as set forth in claim 1,wherein the notification from said second party comprises an emailmessage.
 7. The network based facility system as set forth in claim 1,wherein the transaction is deemed cancelled upon mutual agreementbetween said first party and said second party if said second partyreturns a purchased item back to said first part and said first partyissues a refund to said second party.
 8. The network based facilitysystem as set forth in claim 1, wherein the transaction is deemedcancelled upon mutual agreement between said first party and said secondparty if said second party did not have the high bid in an auctiontransaction.
 9. The network based facility system as set forth in claim1, wherein the second party is not penalized for not paying said firstparty.
 10. A network based facility system, said network based facilitycomprising: means for receiving a complaint over a network from a firstparty to a transaction, the complaint being associated to thetransaction, the first party being obligated to pay a transaction feeupon a completed transaction; means for determining if said complaint isdue to said transaction being cancelled upon mutual agreement betweensaid first party and a second party; means for sending a request, whensaid first party indicates that said transaction was cancelled uponmutual agreement, over the network to said second party to thetransaction requesting a notification if said transaction was notcancelled; and means for providing restitution of said transaction feeto the first party if no notification specifying that said transactionwas cancelled is received from said second party.
 11. The network basedfacility system as set forth in claim 10, wherein the restitution to thefirst party is a refund of funds to the first party.
 12. The networkbased facility system as set forth in claim 10, wherein the restitutionto the first party is a partial refund of funds to the first party. 13.The network based facility system as set forth in claim 10, wherein themeans for automatically providing restitution includes a means forautomatically providing funds from a financial account related to thenetwork based facility system direct to a financial account related tothe first party.
 14. The network based facility system as set forth inclaim 10, wherein the notification from said second party comprises anemail message.
 15. The network based facility system as set forth inclaim 10, wherein the transaction is deemed cancelled upon mutualagreement between said first party and said second party if said secondparty returns a purchased item back to said first part and said firstparty issues a refund to said second party.
 16. The network basedfacility system as set forth in claim 10, wherein the transaction isdeemed cancelled upon mutual agreement between said first party and saidsecond party if said second party did not have the high bid in anauction transaction.
 17. A method for resolving disputes in anetwork-based facility, the method comprising: receiving a complaintover a network from a first party to a transaction, the complaint beingassociated to the transaction, the first party being obligated to pay atransaction fee upon a completed transaction; responsive to receipt ofthe complaint, determining by a computer if said complaint is due tosaid transaction being cancelled upon mutual agreement between saidfirst party and a second party to said transaction; sending a request,when said first party indicates that said transaction was cancelled uponmutual agreement, over the network to said second party to thetransaction requesting a notification if said transaction was notcancelled; and providing restitution of said transaction fee to thefirst party if no notification specifying that said transaction wascancelled is received from said second party.
 18. The method as setforth in claim 17, wherein the restitution to the first party is arefund of funds to the first party.
 19. The method as set forth in claim17, wherein the restitution to the first party is a partial refund offunds to the first party.
 20. The method as set forth in claim 17,wherein the restitution is automatically provided directly from afinancial account related to the network based facility system to afinancial account related to the first party.
 21. The method as setforth in claim 17, including not providing the restitution to the firstparty if said second party sends said notification specifying saidtransaction was not cancelled.
 22. The method as set forth in claim 17,wherein the notification from said second party comprises an emailmessage.
 23. The method as set forth in claim 17, wherein thetransaction is deemed cancelled upon mutual agreement between said firstparty and said second party if said second party returns a purchaseditem back to said first part and said first party issues a refund tosaid second party.
 24. The method as set forth in claim 17, wherein thetransaction is deemed cancelled upon mutual agreement between said firstparty and said second party if said second party did not have the highbid in an auction transaction.
 25. The method as set forth in claim 17,wherein said method further comprises: accepting the complaint from thefirst party only upon determining the complaint is sent from the firstparty a predetermined time period after the associated transaction. 26.The method as set forth in claim 17, wherein the second party is notpenalized for not paying said first party.
 27. A machine-readable mediumhaving instructions when executed by a machine for resolving disputes ina network-based facility, causes the machine to perform the stepscomprising: receiving a complaint over a network from a first party to atransaction, the complaint being associated to the transaction, thefirst party being obligated to pay a transaction fee upon a completedtransaction; responsive to receipt of the complaint, determining if saidcomplaint is due to said transaction being cancelled upon mutualagreement between said first party and a second party to saidtransaction; sending a request, when said first party indicates thatsaid transaction was cancelled upon mutual agreement, over the networkto said second party to the transaction requesting a notification ifsaid transaction was not cancelled; and providing restitution of saidtransaction fee to the first party if no notification specifying thatsaid transaction was cancelled is received from said second party. 28.The machine-readable medium as set forth in claim 27, wherein therestitution to the first party is a refund of funds to the first party.29. The machine-readable medium as set forth in claim 17, wherein therestitution to the first party is a partial refund of funds to the firstparty.
 30. The machine-readable medium as set forth in claim 27, whereinthe restitution is automatically provided directly from a financialaccount related to the network based facility system to a financialaccount related to the first party.
 31. The machine-readable medium asset forth in claim 27, including not providing the restitution to thefirst party if said second party sends said notification specifying saidtransaction was not cancelled.
 32. The machine-readable medium as setforth in claim 27, wherein the notification from said second partycomprises an email message.
 33. The machine-readable medium as set forthin claim 27, wherein the transaction is deemed cancelled upon mutualagreement between said first party and said second party if said secondparty returns a purchased item back to said first part and said firstparty issues a refund to said second party.
 34. The machine-readablemedium as set forth in claim 27, wherein the transaction is deemedcancelled upon mutual agreement between said first party and said secondparty if said second party did not have the high bid in an auctiontransaction.
 35. The machine-readable medium as set forth in claim 27,wherein said method further comprises: accepting the complaint from thefirst party only upon determining the complaint is sent from the firstparty a predetermined time period after the associated transaction. 36.The machine-readable medium as set forth in claim 27, wherein the secondparty is not penalized for not paying said first party.